Is this the right time to take risks with investment funds?

Investors are moving into risky areas despite the downturn while institutions are doing the opposite, show Investment Management Association figures

Nuts for Brazil: private investors back emerging markets as institutions pull out (Paulo Whitaker)
Private investors are being more adventurous when buying investment funds but
institutions are doing the opposite.

They sold a net £113m from global emerging markets funds in January, according
to figures from the Investment Management Association, but retail investors
bought £78m. Meanwhile, individuals sold a net £228m from “lower risk”
corporate bond funds, while institutions bought £1.3 billion.

Justin Modray at Candid Money, the adviser, said: “There are some big
differences between where the professionals are putting their money versus
private investors. Strategic bond funds, for instance, were the
second-highest retail seller in January at £284m whereas institutional
investors moved out of the sector to the tune of £29m.”

Meanwhile, research by YouGov for Willis Owen, the discount broker, found that
more than half of all adults are willing to take some risk.